#PowellRemarks
On Wednesday, Federal Reserve Chairman Jerome Powell issued sharp warnings: Donald Trump's tariff policy could seriously impact the U.S. economy. According to Powell, the new tariffs threaten to accelerate inflation and slow growth — a volatile combination that the Fed is trying to protect the economy from.

"We find ourselves in a very difficult situation," Powell admitted, noting that the scale of the tariffs had exceeded all expectations. According to him, the central bank is forced to balance between its dual mandate: to restrain inflation while simultaneously supporting employment. "These are fundamental changes that have no clear historical analogues," he added.

Markets reacted immediately. The S&P 500 index fell by 2.2%: investors were frightened by Powell's 'hawkish' tone and his hints that the Fed would not rush to lower rates — even if markets begin to decline. He separately emphasized: the so-called 'Fed put' — the unspoken support for the markets from the Fed — does not exist. This sounded like a cold shower for Wall Street.

But Donald Trump, as usual, did not stay on the sidelines. On social media, he criticized Powell, stating that his resignation "cannot happen fast enough." The president also once again urged the Fed to lower interest rates — despite inflationary risks.

Meanwhile, the Supreme Court is considering a case that could potentially give the president the right to dismiss the heads of independent federal agencies, including the Fed chair. Recently, the court allowed Trump to temporarily suspend two members of the labor council, and a final decision is expected in the summer. If it is in favor of the White House — Powell could indeed find himself in a vulnerable position.

The Fed is currently maintaining the key rate at 4.25%–4.5% and has taken a wait-and-see stance. The regulator is closely monitoring how tariffs will affect the economy and promises to act "based on data, not political pressure."

While the U.S. economy appears stable, alarming signals are already sounding: business and consumer sentiment are deteriorating, imports have surged ahead of tariff implementation, and consumer spending is growing ever more slowly.

Financial markets remain in a state of uncertainty: Trump's tariff rhetoric clashes with the cautious stance of the Fed, and the stakes are high in this confrontation — both for the American economy and for the entire global financial system.